Determine the net present value of the project

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Problem - Net present value

Gold Software, Inc., is considering an investment in a new game product titled EagleGolf. The project will require an investment of $3,800,000. The five-year revenues and cash expenses over the product's life are estimated as follows:


Revenues

Cash Expenditures

Year 1

$ 500,000

$ 750,000

Year 2

2,600,000

1,500,000

Year 3

3,400,000

1,700,000

Year 4

3,000,000

1,000,000

Year 5

2,100,000

800,000

Required - Assuming a minimum desired rate of return of 8%, determine the net present value of the project.

Reference no: EM132690553

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